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INVESTMENTS


GUIDING PHILOSOPHY

Five core concepts collectively provide a framework by which LACERA aims to promote sustainable investment returns and responsible stewardship of fund assets:

A graphic suggesting the five concepts are interrelated.

Accountability

Governance structures and practices should encourage the corporate boards of portfolio companies in which LACERA invests—as well as LACERA’s external asset managers—to be accountable to those who provide the firm with capital. Accountability helps to ensure that a firm is managed in the best interests of investors.

Integrity

Integrity and trust are the cornerstone of financial markets and essential for economic stability. Core investor rights and protections are crucial to promoting integrity in financial markets.

Aligned Interests

Executive compensation and incentives at portfolio companies and asset management fees should align the interests of senior executives and asset managers with those who provide the firm with capital—its investors.

Transparency

Investors should receive clear, comprehensive, and timely disclosures about fundamental elements of the business and financial activities of the firms in which they invest.

Prudence

Firms should prudently identify, assess, and manage environmental and social factors that may impact the firm’s ability to generate sustainable economic value.

LACERA’s principles for sound governance are further detailed in LACERA’s Corporate Governance Principles.

10/5/18